Climate conditions and your car purchase.
Can the weather affect car discounts? Yes it can, according to Chris Crow, Chief Editor at car pricing experts CAP. He’s recently conducted a study to try and find a correlation between weather patterns and car prices. His findings, which are published in industry journal AM Magazine, seem to suggest that warmer weather adds a few more zeros to the end of a price of a used auto.
Sunshine Sales
Crow says, Both 2002 and 2006 began with similar hours of sunshine through to the month of May. However, in June 2006 there were an additional 60 hours of sunshine compared to 2002, while July enjoyed 115 additional hours over the same period in 2002.
It was also a cracking year for strong used car values, which supports what dealers often tell us that the better the weather, the stronger the demand for used cars.
Market Conditions
His study focused on years 2002 and 2006, which both had similar economies, but markedly different weather patterns. It may sound a bit flimsy, but Chris Crow’s findings are intriguing – certainly worthy of more research from either himself or another party. Crow’s research, by the way, shows that the whole market benefits, and not just sun-stealing autos like convertibles.
Is a bright, sunny day more likely to urge people to head outdoors to their local used car dealership and investigate the new car discounts available? If Chris Crow is right, then exactly how harsh does the weather need to be for a consistent period before a dealership goes out of business? Could a used car dealership theoretically invest in meteorology technology to predict the weather, and adjust their prices according to what Mr. Blue Sky fancies doing on any particular day?
Buying Habits
Of course, such a strategy would be folly. But, if accurate, it’s interesting to know that weather does play a part in people’s used car buying habits. Does that relate to other industries, we wonder – will people invest in a new washing machine if heavy fog descends one afternoon?
The only logical reason that we can think of is that people simply want to enjoy the weather, if the findings are accurate. They must want to invest in a used car and go on a road trip with friends, and be as sociable as possible whilst the sun’s out.
Good luck to them, we say!
See Also — Dealers: Use Open Recalls to Drive Sales